More Accounting Transparency May Distort Markets: Haresh Sapra
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Sept. 1 (Bloomberg) -- It is now believed that in the yearspreceding the recent financial turmoil, banks took excessiverisks that weren’t disclosed, and regulators were only able tointervene after widespread panic had brought the system to itsknees.
More transparency, it is argued, could have allowed themarket to discipline such excessive risk-taking behavior. Yetthere is evidence that, in many situations, greater disclosuremay not be good corporate governance or even desirable.